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Understanding Fixed Costs and Variable Costs Cost behavior is fundamentally important concept to managerial accounting. The following statements describe various aspects of cost behavior: a. Facility-level costs include production labor, raw materials, and utilities. b. Fixed costs vary in direct proportion to changes in production volume, but are constant when expressed on a per-unit basis. c. The normal range of prouction expected for a particular product and company is called the relevant range. d. Asssumptions about the behavior of fixed and variable costs are expeced to hold inside and outside the relevant range. e. Costs that vary, but only with relatively large changes in production volume, are often called step costs. f. The cost equation y = a + bx can be used to describe fixed costs, but not variable costs. Required: Indicate whether each of the preceding statements is true or false. Start entering your answers in G6. Mixed Costs Using High/Low Method Sub-Objective 4-2 PG Phones accumulated the following production and overhead cost data for the past five months related to its production of cell phones: January February March April May Prouction ( Cell Phones) 13,600 11,500 12,750 14,300 13,250 Overhead Cost $ 34,500.00 $ 29,500.00 $ 30,100.00 $ 35,940.00 $ 32,650.00 Required: a. Use the high/low method to calculate the variable cost per unit and fixed costs for PG Phones. b. What are estimated total costs for production of 13,000 cell phones. Review the information on pages 101 and 102 and then enter your answers starting in H14